Accounting Fraud at CIT Computer Leasing Group, Inc.

2011 ◽  
Vol 26 (3) ◽  
pp. 569-591 ◽  
Author(s):  
Jeffrey E. Michelman ◽  
Victoria Gorman ◽  
Gregory M. Trompeter
Keyword(s):  
Law Enforcement ◽  
Internal Control ◽  
Accounting Information ◽  
Internal Controls ◽  
Fraud Triangle ◽  
Accounting Fraud ◽  
Internal Auditing ◽  
Accounting Information Systems ◽  
Forensic Accounting ◽  
Florida Department

ABSTRACT The case chronicles a newly promoted manager's search to uncover an inventory fraud that had been perpetrated by her supervisor at CIT, a publicly held company. During the ensuing investigation, CIT and the Florida Department of Law Enforcement identified 36 different transactions involving the diversion of nearly 2,500 computers, with a conservative estimated total loss to the company of $637,000. Students are also exposed to the importance of internal controls, red flags, the fraud triangle, and forensic accounting techniques. The case also lets the reader see what occurs when, due to management override of internal control, a subordinate no longer trusts a supervisor's communicated information. This can be used at the undergraduate or graduate level in an Accounting Information Systems, Internal Auditing, or Auditing or Fraud/Forensic Accounting class. The Teaching Notes also have an accompanying video, in which the investigators and prosecutor discuss issues related to the case, including the specifics of the case, whistleblowers, and the fraud triangle, and the roles of law enforcement and the judiciary. Included in the video are interviews with the Florida Department of Law Enforcement investigators and the prosecuting attorney that were involved in the CIT case.

scholarly journals PENERAPAN SISTEM INFORMASI AKUNTANSI DAN PENGENDALIAN INTERNAL TERHADAP KECURANGAN AKUNTANSI PADA BANK PERKREDITAN RAKYAT KOTA BATAM

2020 ◽  
Vol 4 (2) ◽  
pp. 7
Author(s):  
Dian Efriyenty
Keyword(s):  
Information Systems ◽  
Internal Control ◽  
Accounting Information ◽  
Internal Controls ◽  
Accounting Fraud ◽  
Accounting Information Systems

The phenomenon associated with the occurrence of fraud in BPR is that it is closely related to the role of BPR internal control, which does not systematically oversee leadership in monitoring, evaluating and reporting all processes and stages of activities. As in the case of an error at BPR Nusamba, one of the employees who collects savings and credit installments, must be deposited with client money but extortion occurs on BPR Nusamba cash, with the amount of money reaching Rp 115,429,909. The sample of this study was respondents who received authority in the use of funds in 27 BPR Batam City units. The results of the study stated that partially and simultaneously the application of accounting information systems and internal controls significantly influence accounting fraud.

Towards an Understanding of Accounting Information Systems as a Discipline: A Comparative Analysis of Topical Coverage in AIS and MIS Courses

2009 ◽  
Vol 4 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Uday S. Murthy ◽  
Linda Ragland
Keyword(s):  
Information Systems ◽  
Internal Control ◽  
Management Information Systems ◽  
Accounting Information ◽  
Transaction Processing ◽  
Internal Controls ◽  
Management Information ◽  
Related Field ◽  
Accounting Information Systems ◽  
Sarbanes Oxley

Abstract The accounting information systems (AIS) discipline lacks a sense of identity relative to the closely related field of management information systems (MIS). By identifying how AIS is evolving and what makes AIS unique from MIS, the field can gain a better understanding of its importance. We analyze a sample of syllabi for the introductory AIS and MIS courses, focusing on similarities and differences between the AIS and MIS fields as reflected in the topical coverage choices made by AIS and MIS educators. We also investigate the effects of the passage of the Sarbanes-Oxley Act on topical coverage in the introductory AIS course. The findings reveal that while AIS courses have a unique focus on transaction processing and internal controls relative to MIS courses, more technical topics such as hardware and software issues and IS solutions are covered more commonly in MIS courses rather than AIS courses. We also find that AIS topical coverage has changed since the passage of the Sarbanes-Oxley Act, with a more pronounced focus on internal control and security compared to the pre-Sarbanes Oxley era. The key contribution of this paper is in providing empirical evidence in support of the “intersection view” of AIS, which asserts that while AIS and MIS have some topics in common there are also many issues unique to each field.

scholarly journals PENGARUH SISTEM INFORMASI AKUNTANSI DAN PENGENDALIAN INTERNAL TERHADAP KINERJA PERUSAHAAN (STUDI PADA PERUSAHAAN MANUFAKTUR DI ACEH BARAT)

2020 ◽  
Vol 5 (2) ◽  
pp. 249-256
Author(s):  
Rossa Rossa ◽  
Evayani Evayani
Keyword(s):  
Information Systems ◽  
Palm Oil ◽  
Internal Control ◽  
Accounting Information ◽  
Sampling Technique ◽  
Internal Controls ◽  
Primary Data ◽  
Company Performance ◽  
Accounting Information Systems ◽  
Oil Companies

The research examines the influence of the accounting information systems and internal controls on the company performance. The population in this research is all palm oil companies registered at the Badan Pusat Statistik (BPS) of Aceh Barat.  The sampling technique used is saturation sampling. This research uses primary data which obtained through the questionnire results. The data were collected 68 questioners from 3 palm oil companies. Data were processed using SPSS version 22 and analyzed using multiple linear regression, The results show that (1) accounting information systems and internal controls simultaneously, significantly affecting company performance (2) accounting information systems has a positive and significant effect on company performance (3) internal control has a positive and significant effect on company performance

Internal Control, Manager’s Competency, Management Accounting Information Systems and Good Corporate Governance: Evidence from Rural Banks in Indonesia

2020 ◽  
pp. 097215092091984 ◽  
Author(s):  
Ilham Hidayah Napitupulu
Keyword(s):  
Corporate Governance ◽  
Information Systems ◽  
Internal Control ◽  
Management Accounting ◽  
Accounting Information ◽  
Internal Controls ◽  
Survey Method ◽  
Accounting Information Systems ◽  
Good Corporate Governance

This research was inspired by the rules of the Financial Services Authority (FSA) in Indonesia regarding the necessity for good corporate governance for rural banks (RB). So far, good corporate governance regulations have only been binding on commercial banks, but with the development and expansion of services and increased business volume of rural banks, the risk of rural banks has also increased, so this has encouraged the need for good corporate governance in rural banks. To achieve the application of good corporate governance, the quality of a management accounting information system (MAIS) is needed which is supported by the effectiveness of internal controls and manager’s competency. The method used is the explanatory survey method. The sample technique uses random sampling from the target population of the study—as many as 54 rural banks in the North Sumatra Province of Indonesia with a total sample of 45 rural banks. Respondents who are targeted are parties related to management accounting information systems, namely the board of directors or operational managers. Data obtained directly through research questionnaires were processed using Statistical Product and Service Solutions (SPSS) applications. This study found that the competencies of managers affect the quality of MAIS in rural banks, while the effectiveness of internal controls has no effect. This study also found that manager’s competency and the effectiveness of internal controls had an effect on the application of the principles of good corporate governance in rural banks if mediated by the quality of MAIS.

Caroline's Candy Shop: An In-Class Role-Play of the Revenue Cycle

2005 ◽  
Vol 19 (1) ◽  
pp. 131-154 ◽  
Author(s):  
David C. Hayes ◽  
J. Kenneth Reynolds
Keyword(s):  
Internal Control ◽  
Business Processes ◽  
Role Play ◽  
Accounting Information ◽  
Internal Controls ◽  
Accounting Information Systems ◽  
Post Test ◽  
Current Article ◽  
Revenue Cycle ◽  
Technological Opportunities

Recently, Bain et al. (2002) emphasized the critical importance of the transaction-processing cycles and internal control topics to undergraduates in an Accounting Information Systems (AIS) course. The current article outlines an in-class, roleplay exercise designed to provide students with a working understanding of the revenue cycle and its related key documents. Additionally, the exercise encourages students to consider risk exposures, internal controls, and technological opportunities to improve business processes. A pre-/post-test reveals that the in-class role-play is a successful learning exercise that significantly increases students' understanding of the revenue cycle. The test also indicates that students enjoy the experience.

Learning Internal Controls from a Fraud Case at Bank of China

2012 ◽  
Vol 27 (4) ◽  
pp. 1171-1192 ◽  
Author(s):  
Huong Ngo Higgins
Keyword(s):  
Internal Control ◽  
Banking Sector ◽  
Business Students ◽  
Internal Controls ◽  
Fraud Triangle ◽  
Bank Of China ◽  
Recent Reform ◽  
Chinese Banks ◽  
Growing Economy ◽  
Triangle Theory

ABSTRACT This case provides an opportunity to discuss principles of internal control, the process by which an entity's board of directors, management, and other personnel provide reasonable assurance that fraud and theft are prevented and detected. The case also facilitates discussion of the unique corporate governance and internal control environments in China, a fast-growing economy. Readers will be asked to apply the fraud triangle theory to identify internal control weaknesses and to design control activities for preventing fraud. The case is intended for beginning auditing students, but is also suitable for a more general audience such as accounting, management, and business students at the M.B.A. or undergraduate level. The case introduces Bank of China (BOC) against the backdrop of China's banking sector. It describes the proliferation of non-performing loans in Chinese banks, the failure to report these loans correctly, and the way in which these conditions create a climate where fraud and theft might be easily hidden. These problems and the need for internal controls become evident in the description of a major fraud scheme at BOC. After relating this scheme, the case concludes by reviewing recent reform initiatives to modernize internal controls in Chinese banks.

scholarly journals PENGARUH PELATIHAN AKUNTANSI SYARIAH, SISTEM INFORMASI AKUNTANSI DAN PENGENDALIAN INTERNAL TERHADAP KINERJA KARYAWAN BMT KABUPATEN KUDUS

2018 ◽  
Vol 6 (2) ◽  
pp. 270
Author(s):  
Husnurrosyidah Husnurrosyidah
Keyword(s):  
Direct Effect ◽  
Internal Control ◽  
Employee Performance ◽  
Survey Methods ◽  
Accounting Information ◽  
Field Research ◽  
Secondary Data ◽  
Accounting Information System ◽  
Accounting Information Systems ◽  
Microfinance Institution

<p><em>BMT is a sharia microfinance institution that can reach all levels of society and has the potential to develop into a professional, healthy, and sharia Islamic microfinance institution. However, based on observations in several BMTs domiciled in Kudus, Pati, Jepara and Rembang areas, it still seems that employee performance is poorly demonstrated by marketing that cannot reach the targets set by BMT, even many fictitious sales agents are very detrimental to BMT. This is due to the low internal control in the BMT. In addition, there are still many BMT employees who are professional with accounting so employees need sharia accounting training. This research is a field research with a quantitative approach. The data used are primary and secondary data with survey methods through questionnaires. There are three independent variables in this study, namely (X1) training in Islamic accounting, (X2) accounting information systems, and (X3) internal control. The dependent variable (Y) in this study is employee performance. A sample of 94 respondents, using the purposive sampling method. The results of this study indicate that: 1) sharia accounting training has an effect on employee performance indicated that the PAS direct effect coefficient on KK (path c) in model (1) is 0.12 and significant (&lt;0.02); 2) accounting information system influences employee performance by 0.19; 3) internal control has an effect on employee performance indicated by direct effect coefficient of 0.35.</em><em></em></p>

scholarly journals Pengaruh Moralitas Individu, Asimetri Informasi, Efektivitas Pengendalian Internal, dan Keadilan Organisasi Terhadap Kecenderungan Kecurangan (Fraud) Akuntansi (Studi Empiris pada Badan Usaha Milik Daerah Kota Surakarta)

2018 ◽  
Vol 1 (2) ◽  
pp. 233
Author(s):  
Eskasari Putri ◽  
Wahyono W.
Keyword(s):  
Information Asymmetry ◽  
Organizational Justice ◽  
Internal Control ◽  
Sampling Method ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Internal Controls ◽  
Administrative Staff ◽  
Accounting Fraud ◽  
Positive Effect

<span lang="EN">This study aims to determine the effect of individual morality, information asymmetry, the effectiveness of internal control, and organizational justice on the tendency of accounting fraud on BUMD in Surakarta. The theories used in this study are the Triangle Fraud Theory, Agency Theory, and Moral Reasoning Theory. The population of this study is employees who work in the Regional Owned Enterprises in the Surakarta City area. This study sampled administrative staff at the BUMD Surakarta region. The sampling method in this study using purposive sampling method. The tests carried out include testing validity, reliability, classical assumptions, and multiple linear regression analysis. The results showed that information asymmetry, the effectiveness of internal controls, and organizational justice had a positive effect on fraudulent tendencies. While the variabels of individual morality negatively affect the tendency of fraud.</span>

scholarly journals PENGARUH SISTEM INFORMASI AKUNTANSI DAN SISTEM PENGENDALIAN INTERNAL TERHADAP KINERJA PERUSAHAAN (STUDI KASUS PADA KOPERASI DI KECAMATAN PAYANGAN)

2020 ◽  
Vol 11 (2) ◽  
pp. 179-189
Author(s):  
Putu Ayu Yohana Putri ◽  
I Dewa Made Endiana
Keyword(s):  
Information System ◽  
Internal Control ◽  
Linear Regression Analysis ◽  
Accounting Information ◽  
Multiple Linear Regression Analysis ◽  
Company Performance ◽  
Accounting Information System ◽  
Accounting Information Systems ◽  
Purposive Sampling ◽  
Test Tool

One important function of the accounting information system is internal control. The weak internal control system in several cooperatives in Payangan District also results in employees having the opportunity to commit fraud that can harm the company. Performance is the result of work achieved by employees in carrying out tasks in accordance with their responsibilities. Through the achievement of each individual, the company can produce complete performance and achieve success in accordance with what is expected by the company. To improve cooperative performance, it is very important to know the effect of applying accounting information systems and internal controls in improving company performance and increasing company productivity. The population in this study amounted to 531 cooperative members who work at cooperatives in Payangan District. Sampling uses a purposive sampling method and the test tool used is multiple linear regression analysis. The results of this study prove that the accounting information system has no effect on company performance while the internal control structure has a positive effect on company performance. Salah satu fungsi penting dari sistem informasi akuntansi adalah pengendalian internal. Lemahnya sistem pengendalian internal di beberapa koperasi yang ada di Kecamatan Payangan juga mengakibatkan karyawan memiliki kesempatan untuk melakukan kecurangan yang dapat merugikan perusahaan. Kinerja merupakan hasil kerja yang dicapai oleh karyawan dalam melakukan tugas sesuai dengan tanggung jawabnya. Melalui pencapaian masing–masing individu maka perusahaan dapat menghasilkan kinerja seutuhnya dan mencapai keberhasilan sesuai dengan apa yang diharapkan perusahaan. Untuk meningkatkan kinerja koperasi sangatlah penting untuk mengetahui pengaruh penerapan sistem informasi akuntansi dan pengendalian internal dalam meningkatkan kinerja perusahaan dan meningkatkan produktivitas perusahaan. Populasi pada penelitian ini berjumlah 531 anggota koperasi yang bekerja pada koperasi di Kecamatan Payangan. Pengambilan sampel menggunakan metode purposive sampling dan alat uji yang digunakan adalah analisis regresi linear berganda. Hasil penelitian ini membuktikan bahwa sistem informasi akuntansi tidak berpengaruh terhadap kinerja perusahaan sedangkan struktur pengendalian internal berpengaruh positif terhadap kinerja perusahaan.

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